Cirtek Holdings readies P2.88-b share sale in October
Cirtek Holdings Philippines Corp., a Laguna-based semiconductor manufacturing company, has set the timetable for a planned P2.88-billion share sale to October.
Cirtek said in a filing with the Philippine Stock Exchange it would fix the final price on Oct. 21 and schedule the offering period of the sale share on Oct. 23 to 30. The listing date is set on Nov. 5.
The semiconductor firm earlier obtained regulatory approval from the Securities and Exchange Commission and the Philippine Stock Exchange to proceed with the share sale.
Cirtek plans to sell 80 million in primary shares and allow an oversubscription of up to 40 million secondary common shares initially at P24 apiece
The company plans to use the net proceeds from the share sale for strategic acquisitions, capital expenditures, payment of financial obligations and working capital requirements.
Cirtek said its acquisition strategy would focus on leading technologies to generate higher margins and help accelerate the company’s growth.
It will also use a portion of the net proceeds to fund the expansion of its manufacturing plant in Laguna Technopark.
The company said it would construct a three-story building, an extension of the assembly and test operations of unit Cirtek Electronics Corp., and purchase additional manufacturing equipment.
Meanwhile, Cirtek reported it would change its stock trading symbol from “CHIPS” to “TECH.”
“The change in our stock ticker to TECH appropriately symbolizes Cirtek’s transformation from a semiconductor assembly and testing company into a leading technology manufacturing business,” Cirtek chief finance officer Anthony Buyawe said.
“Our new symbol clearly communicates to the investing public our ability to leverage our expertise in cutting-edge technology, particularly in the fast-growing wireless broadband transmission space, as well as our inclination to venture into other areas like communications, e-commerce, and software development. As a complete technology and innovation enterprise, we are able to offer our clients a wider range of products and services and expand our market reach,” he said.
Since its IPO in 2011, Cirtek has been operating as a provider of semi-conductor outsourced assembly and testing services to customers, who in turn provide the semiconductor packages to end applications.
Cirtek in 2014 entered the high-value radio frequency and wireless broadband industry with its acquisition of Remec Broadband Wireless Inc., now known as Cirtek Advanced Technologies & Solutions Inc.